Reform package to institutions impressing allies, says premier

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(ANSA) - Rome, March 19 - Italy is "ready to do its part"
within the European Union by offering reforms to national
institutions and the Constitution, Premier Matteo Renzi said
Wednesday.
"We have offered a package of reforms to the Constitution
and to our institutions that have impressed our European
partners because this is a sign that Italy is ready to do its
part," Renzi told the Lower House on the eve of a two-day summit
of European Union leaders in Brussels.

Among the most urgent reforms are those to Italy's labour
market, to deal with what Renzi called an "atrocious" level of
youth unemployment that exceeds 40%.

These reforms are not an option, "this is not a debate over
whether we can deal with it or not," added Renzi, who has
suggested it is time to shift focus away from concerns about
reducing debt to instead consider policies aimed at encouraging
growth and recovery.

"This pushes parliament" to deal with labour market issues
as well as numerous other economic priorities, and may include
innovative approaches, said Renzi.

Spending Review Commissioner Carlo Cottarelli is devising a
list to cut as much as five billion euros in the last eight
months of 2014 for lower-priority areas, to free money for
higher priorities, Renzi noted.

Renzi admitted that will demand hard choices in terms to
where to cut, for which he will take responsibility.

Like a family budget, "if there is not enough money, it's
Mom and Dad who decide what to cut and what is not (cut)," he
said.
He also reminded the House of his dramatic plan for tax
cuts and targeted social investments unveiled last week.

That included plans to cut income taxes for low-income
Italians by 10 billion euros, invest 1.74 billion euros in
social housing programs, spend 3.5 billion euros on schools, and
repay 68 billion euros in outstanding bills for government
services by July.

At the same time, he has insisted that his program would
not cause Italy to breach the 3%-deficit-to-threshold allowed by
the EU.